Latest insight from Global Blue reveals that international shoppers from America and Russia are sustaining the Tax Free Spend development in the run up to Christmas.
Global Blue’s data has revealed that American international shoppers have demonstrated a 25% rolling three month progression in tax free spend whilst Russian international shoppers have increased their tax free spending by a rolling 3 month progression of 12%.
Global Blue predicts that over the next 90 days there will be a 14% increase in tax free transactions from American globe shoppers and a 7% increase from Russian globe shoppers spending in the UK.
Whilst shoppers from Russia are increasing their spending across European destinations, driven to UK shores by rising oil prices, the rise in American international shoppers is due to the US dollar strength and income tax reductions which are positively impacting the household disposable income for shopping.
This increase from both US and Russian shoppers is in contrast to Chinese Globe shoppers who Global Blue predicts will experience a -7% drop in tax-free transactions over the next 90 days. Although Chinese shoppers make up 28% of tax free spend in Europe, compared to the US and Russia’s 8% and 7% respectively, Chinese consumer confidence and change in consumer expectations, caused by a greater share of Millennials, are limiting their tax free spend growth in Europe.